First Minister Announces 12-Month Hospitality Sector Rates Cap

Scotland’s First Minister, Nicola Sturgeon, has agreed to a 12-month business rates cap for hospitality and tourism businesses in the face of mounting pressure from industry bodies.

The Scottish Tourism Alliance (STA), the British Hospitality Association (BHA) and the Scottish Licensed Trade Association (SLTA) have campaigned heavily over the last few months to bring about a reversal in the proposal to increase business rates, and their efforts appear to have had the desired effect – for the time being, at least.

STA Chief Executive Marc Crothall (pictured left) said: ‘On the back of damning evidence from businesses on the devastating impact of the proposed Commercial Rateable Values, we wrote to the First Minister demanding a need for a review of the business rates revaluation. We are encouraged by the Finance Minister’s announcement of a 12-month 12.5% rates cap for hospitality and licensed trade enterprises; this is a pragmatic move that will allow the Barclay Review group to report on its findings and for a more equitable process for rates evaluation to be agreed and applied.

‘In the meantime we will proceed with our planned meeting with Scottish Government Cabinet Ministers Derek Mackay and Keith Brown at 1.30pm tomorrow (22nd February) to discuss the Finance Minister’s relief package in more detail, and also the desired process to be followed by the assessors before a new approach is introduced on 1st April 2018.

‘Today’s announcement acknowledges the importance of tourism as the main economic driver in Scotland. We look forward to continuing our dialogue with the Scottish Government, its agencies and tourism businesses over the coming weeks.’